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Australian Wool Markets Rebound

AUSTRALIA – Much stronger prices in the Australian wool markets this week have largely cancelled out last week’s downward movement, maintaining values around 23 per cent ahead year on year.

This is according to analysts at Australia Wool Innovation, who said the markets again proved hard to predict, closing with a gain of almost three per cent.

The “vastly different direction” of the market had followed positive pre-sale sentiment and coincided with a return of local buyers who had remained on the sidelines in recent weeks.

An AWI analyst said: “The early indications proved correct as the market for Merino fleece of all microns opened to large gains of 35 to 45ac/clean/kg and sold strongly at those new levels to the close.

“The final day again saw all types record a 10ac rise but a weakening in competition was witnessed at the conclusion of selling for Merino fleece wools broader than 19 micron. “

Tuesday’s positive NZ Merino sale was a “good guide” into the likelihood of a strong Australian market opening.

AWI predicted prices to hold next week with just over 34,000 bales reaching auction.

Next week brings the Nanjing Wool Market Trade Conference, which is “always a good guide” to trade activity, AWI said.